金融专业英语重点.doc

Primary markets facilitate the issuance of new securities. Secondary markets facilitate the trading of existing securities. Stock Stocks (also referred to as equity securities) are certificates representing partial ownership in the corporations that issued them. Money market Those financial markets that facilitate the flow of short-term funds (with maturities of less than one year) are known as money markets. Derivative securities are financial contracts whose values are derived from the values of underlying assets Commercial paper is a short-term debt instrument issued only by well-known creditworthy firms and is typically unsecured. Repurchase agreements refers that one party sells securities to another with an agreement to repurchase the securities at a specified date and price. A banker’s acceptances indicates that a bank accepts responsibility for a future payment. They are commonly used for international trade transactions. Stripped Treasury Bonds The cash flows of bonds are commonly transformed(转化) by securities firms so that one security represents the principal payment only while a second security represents the interest payments: a principal-only (PO) security and an interest-only (IO) security An initial public offering is a first-time of shares by a specific firm to the public A secondary stock offering is a new stock offering by a specific firm whose stock is already publicly traded. A put option grants the owner the right to sell a specified financial instrument for a specified price within a specified period of time. American option The option which can be exercised on or before the maturity date is called American option Exercise price or strike price: is the price at which financial instrument can be bought or sold in the future. A bond index futures contract allows for the buying and selling of a bond index for a specified price at a specifies date. The Loanable Funds theory, commonly used to explain interest rate movements, suggests that t